It’s important to know how much you can comfortably spend and be able to back that up with verification from a bank or lender. Condominium apartments require at least 10% down while cooperative apartments generally require at least 25% down.
In addition to that, buyers must also work with a real estate attorney to assist with the contract and closing processes of a home purchase as there can be many moving parts during a negotiation. NextGen agents work with the most experienced attorneys and lenders in the business to ensure that our clients feel protected in their investment. We also cover the attorney fees, it is our duty to ensure the process is both seemless and secure.
NextGen leverages multiple partnerships and close relationships to ensure a positive experience for the you. We help with construction costs, moving costs, and much more.
You should also be aware that there are closing costs associated with every transaction in NYC for both buyers and sellers. These costs differ between condominiums and cooperatives and depend on the contract price. Your agent and real estate attorney can help you understand the expense associated with mansion tax, title fees, mortgage recording tax, etc.
The Search
Searching & Understanding the Market
Aside from knowing the specifics of the apartment you want (i.e. how many bedrooms, bathrooms, etc.), you should create a list of the top two or three neighborhoods that you want to live in. Think about your potential commute to work, where your friends live, and neighborhood amenities like restaurants, schools, transportation, and grocery stores.
We will help advise you throughout the search and can set up a schedule to show you the homes that are the best fit for your criteria. Once you find a home you love, you are ready to make an offer!
Offer & Negotiation
Getting the Best Deal
Offers are made in writing and your agent will relay your offer to the seller’s agent. In your offer, you should have your pre-approval letter (if you are financing), a REBNY form, which shows your assets and liabilities, and your attorney information.
Once your agent puts in an offer on your behalf, know that everything will be negotiable. The seller may send you a counteroffer, which then begins a back-and-forth process until both parties come to an agreement.
It is important to note that offers are not legally binding, and that there is no legal committment until you sign a contract.
Contract Review & Signing
Find a Real Estate Agent
From this point on, it typically takes between two and four months to complete the purchase of your home.
During a sales transaction, a New York City attorney representing a seller will draw up a contract for the buyer’s attorney. The buyer’s attorney then does what’s called due diligence – reading minutes, financial statements of buildings, etc. – to make sure that the building is in good standing.
The buyers sign the contract once due diligence is resolved and forward the contract with a 10% deposit. The sellers then countersign the contract, and the money is held in escrow until closing. It is important to remember that the seller can entertain other offers while contract negotiations are taking place but cannot do so after signing the contract.
Mortgage Approval
Getting your Mortgage Locked in
If you are financing, you should already have your pre-approval letter from your mortgage banker. Mortgage applications cannot be processed without an executed contract. If an apartment is being financed, the board requires a commitment letter from a lender.
These letters are generally the last items to complete a board package/condo application. If the board reviews the board package and is satisfied with it, they will issue an approval more formally known as the First Right of Refusal.
Board Package
Wrapping your Package
If you are financing, you should already have your pre-approval letter from your mortgage banker. Mortgage applications cannot be processed without an executed contract. If an apartment is being financed, the board requires a commitment letter from a lender.
These letters are generally the last items to complete a board package/condo application. If the board reviews the board package and is satisfied with it, they will issue an approval more formally known as the First Right of Refusal.
For your board package/condo application, be prepared to provide financial statements, three years of tax returns, bank statements, and personal and professional references (this can vary depending on the building). If it is a co-op, an interview will be conducted before the board decides whether or not they want to issue an approval. SERHANT. agents will help you put your package together and, if required by the board, will prepare you for the interview.
Board Approval & Closing
Final Steps
After board approval, managing agents generally set a closing date and buyer and seller attorneys coordinate with the appropriate banks on available dates and times. After closing, you’ve officially purchased your new home. Your search has finally come to an end and it’s time to celebrate!
Mortgage Calculator
Estimate your monthly mortgage payment, including the principal and interest, property taxes, and HOA. Adjust the values to generate a more accurate rate.
We have relationships with top, private bank divisions in Manhattan that specialize in customized financial packages and discounted rates for our buyers! We also have a network for seasoned attorneys ready to help! Please reach out for more info.
